The new funding scheme for the Hospital Authority will allow for better service planning and assessment.
Secretary for Food & Health Prof Sophia Chan made the statement at a press conference today to elaborate on the health initiatives in the 2017 Policy Address.
The Policy Address unveiled the new scheme to increase the authority's recurrent funding progressively on a triennium basis, which will enable it to tackle its staffing issue and service demands arising from a growing and ageing population more effectively.
Prof Chan said: "If you look at the context of ageing population and also the pressure given by chronic diseases and so on, the pressure and also the service demand (on) the Hospital Authority is increasing exponentially.
"This three-year-cycle funding on a triennial basis provided to the Hospital Authority can actually help, having regard to population growth rate and also demographic changes, (and) let the Hospital Authority better assess and also plan their services."
On the initiative to strengthen primary healthcare services to address the needs of an ageing population, Prof Chan said primary healthcare emphasises preventive care and self-health management.
She said the initiative will enhance overall public health, reduce hospital re-admission and the use of accident and emergency services.